Celeb strategist with national radio show misled prospective clients, SEC says

SEP 09, 2012
San Diego financial adviser Ray Lucia, host of a nationally syndicated daily radio program, gave misleading information for several years about his “Buckets of Money” investment strategy for retirement savings, the Securities and Exchange Commission alleged last week. During investment seminars for prospective clients, he claimed that his “extensive back-testing” of the strategy during bear markets showed that using it would offer future retirees inflation-adjusted income while protecting or even enhancing their retirement savings, the SEC said in its administrative complaint. Mr. Lucia and his firm, then called Raymond J. Lucia Cos. Inc., performed “scant, if any, actual back-tests,” the SEC said. “Lucia and RJL left their seminar attendees with a false sense of comfort about "Buckets of Money,' “ said Michele Wein Layne, director of the SEC's Los Angeles regional office. “The so-called back-tests weren't really back-tests, and the strategy wasn't proven as they claimed.” Mr. Lucia's attorney, Michael Perlis, said that his client plans to fight the allegations. In addition, he said that since the SEC's investigation began two years ago, Mr. Lucia has rejected several settlement offers in favor of the chance to clear his name. “We are interested in litigation and vindication,” said Mr. Perlis, a former SEC assistant enforcement director. “These government proceedings have an impact on reputations, and the fact is, there have been no investor complaints.” When the SEC approached Mr. Lucia about his description of the “Buckets of Money” strategy, he stopped using the information, even though he didn't think that it was necessary, Mr. Perlis said. The regulator is seeking a cease-and-desist order against something his client hasn't done in two years, he added. In its complaint calling for an administrative hearing, the SEC said that it will seek to have Mr. Lucia pay an appropriate civil penalty. Mr. Lucia began “The Ray Lucia Show” in 1991; it was syndicated nationwide in 2000. [email protected], Twitter: @skinnerliz

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.